Hunnu Coal (HUN)

The Mongolian coal junior jumped 2.9 per cent on Thursday to hit a six-week high of $1.41 after it upgraded its resource estimate for its Tsant Uul coal project. The miner said the project holds 85 per cent more coal than its last projection and further upgrades are likely in the latter half of this calendar year, with additional drilling under way.
Hunnu Coal
has a total resource of 843 million tonnes of coal across all of its projects and is aiming to start mining in the December quarter of this year.
The company
is in advanced discussions for an off-take with potential future buyers of the Tsant Uul project coal and is targeting initial production of 1.5 million tonnes of coal in 2012, which should double in the following year. However, Hunnu is not expected to turn a net profit until 2013, although investors with a stomach for risk could find the stock appealing as the miner has an average price target of $2.20 a share, according to Bloomberg.